krispy kreme marketing
...fit from the “high volume with high quality” production of doughnuts. Market Bakery Products -doughnut stores, bagel shops, breakfast fast foods, bakeries, late-night dessert stores Size of Market: $15,987,900 Market Share: 17% Product Growth 2001 fiscal year: 17.1% 2002 fiscal year: 12.8% 2003 fiscal year: 11.8% Industry Life Cycle The doughnut market is in the growth phase of the product life cycle. Industry sales are still increasing and profit is rising for firms in the industry. In 2002, the doughnut market saw a 9% gain in sales over 2001. Product Life Cycle Krispy Kreme doughnuts are definitely experiencing growth. The Krispy Kreme investor relations website boasts "strong growth potential" for the future and a recent 5 year annual revenue growth rate of 25.36%. Also Krispy Kreme's growth is apparent through their continued nationwide expansion and their recent entry into the global market including Canada, the United Kingdom, and Australia. Krispy Kremes are now delivered to many grocery stores and gas stations and are “coming soon” to a WallMart near you! Krispy Kreme Appeal Krispy Kreme doughnuts have a universal appeal. Stated on their website: "Our market research indicates that Krispy Kreme's breadth of appeal extends across all major demographic groups, including age and income. In addition to their taste, quality and simplicity, Krispy Kreme doughnuts are an affordable treat." A Fortune Magazine article supported Krispy Kreme's claim of "universal appeal". According to the publication, "[Krispy Kreme doughnuts] are loved equally by 5-year-olds and 75-year-olds. By whites, blacks, Asians, and Hispanics. By New Englanders and Southerners. By Californians and New Yorkers. (Never mind by junkies and cops.)... Only three types of people claim they don't like Krispy Kremes: nutritionists (your basic glazed has 200 calories and 12 grams of fat), Dunkin' Donuts franchisees, and compulsive liars." Target Market Considering this wide range of consumers that Krispy Kreme appeals to, the target market is incredibly broad. The target market spans all demographics and extends to virtually all individuals within the geographic proximity of their retail locations. Market Segmentation Given the breadth of their target market, there are countless dimensions that could be used to segment the market. We were unable to find a breakdown of the particular segmentation scheme that Krispy Kreme uses. Since the target market is so broad and extensive, Krispy Kreme ...